The technique is proposed by Amit Agarwal. He serves an HTML file through Amazon S3 for hotlinked image requests, providing a backlink to his own website. Would this have a negative effect on image SEO and ranking?

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I didn't know about Bucket Policies - thanks! This solution may however be less SEO friendly than Amit's? A bucket policy denial returns a 404 error - but Amit's workaround provides a link back to the original resource, so this is better I think.
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skibulkAug 17 '12 at 23:05

This only works in S3. Most people use S3 as storage only and serve the files through CloudFront, which unfortunately does not have an equivalent.
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DisgruntledGoatAug 18 '12 at 23:12